Repurposed EV Batteries Proposed for AI Data Center Power Storage

Retired electric vehicle battery packs are being examined as a way to reduce peak electricity purchases at AI data centers. The packs, removed during warranty replacements and routine maintenance, retain roughly 80 percent of their original capacity and can charge during off-peak hours before discharging when demand rises.

A global IT asset disposition firm receives retired packs from automakers including Tesla, Lucid, and BMW while also providing decommissioning services for major AI data center operators, including Microsoft. The dual role gives the firm access to both supply and potential customers for stationary storage systems.

The global data-center battery market was valued at roughly $3.38 billion in 2025 and is projected to reach nearly $6 billion by 2035, according to Cervicorn Consulting and Market Techie. Lithium-ion battery shipments for AI data-center energy storage are projected to rise from 12 gigawatt-hours in 2025 to 272 gigawatt-hours by 2030.

More than 17 million electric vehicles were sold globally in 2024, creating a growing supply of packs that will eventually leave automotive service. New lithium-ion battery pack prices for stationary storage fell to roughly $70 per kilowatt-hour in 2025, a decline of about 45 percent from the previous year.

In the summer of 2025, a battery recycling company deployed a 12-megawatt, 63-megawatt-hour microgrid at its Nevada campus using hundreds of repurposed EV battery packs. The system powers a modular data center that houses roughly 2,000 GPUs and has maintained 99.2 percent operational availability since entering service.

By early 2026, the data-center operator announced plans to expand from four to 24 modular units, increasing power demand to approximately 20 megawatts. The operator stated it incorporates onsite generation and battery storage to reduce pressure during peak periods and covers the cost of grid infrastructure upgrades.